EARNINGS / The Consumers' Gas Company Ltd. Announces Earnings and
Dividends
TSE SYMBOL: CGT.PR.B CGT.PR.H CGT.PR.G CGT.PR.A
ME SYMBOL: CGT.PR.H CGT.PR.G
JANUARY 30, 1998
TORONTO, ONTARIO--(January 30, 1998) - The Consumers' Gas Company
Ltd., today announced income applicable to common shares of $30.9
million or $0.45 per common share for the three months ended
December 31, 1997, compared to $38.6 million or $0.58 per common
share for the comparable period last year.
The Board of Directors declared the quarterly dividends on all
classes of preference shares payable on April 1, 1998, to
shareholders of record on March 5, 1998.
Pref. Group 1, Series A & B $1.375
Pref. Group 1, Series C $1.25
Pref. Group 2, Series C $0.403125
Pref. Group 3, Series C $0.3575
The Consumers' Gas Company Ltd., Toronto, is a wholly-owned
subsidiary of IPL Energy Inc. of Calgary. IPL Energy is a North
American leader in energy services and delivery operating the
world's longest crude oil and liquids pipeline system, and
Canada's largest natural gas distribution company through
Consumers Gas which serves approximately 1.4 million customers
primarily in central and eastern Ontario. IPL Energy's common
shares trade on the Toronto and Montreal stock exchanges in Canada
under the symbol "IPL". In the United States the shares trade on
the NASDAQ under "IPPIF".
/T/
THE CONSUMERS' GAS COMPANY LTD.
Financial and Operating Highlights
For the three months ended
December 31
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1997 1996
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Financial
(expressed in thousands except
per share amounts)
Gas sales $ 409,313 $ 427,760
Transportation of gas 23,286 5,244
Other revenue 64,786 59,790
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Total revenue 497,385 492,794
Gas costs 255,036 248,865
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Net revenue $ 242,349 $ 243,929
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Net income $ 30,971 $ 38,698
Income applicable to common shares $ 30,900 $ 38,625
Earnings per common share $ 0.45 $ 0.58
Long term interest coverage ratio (1) 2.5 2.8
Net tangible asset coverage ratio
of long term debt
Before deferred taxes 1.7 1.7
After deferred taxes 1.6 1.7
Operating
Volumetric statistics
(millions of cubic metres)
Gas sales
Residential 955 1,006
Commercial 866 1,027
Industrial 261 356
Wholesale 40 51
Transportation of gas 1,043 681
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Total distribution volume 3,165 3,121
---------------------------
---------------------------
Number of active customers 1,368,346 1,315,291
Degree day deficiency (2)
Actual 1,306 1,351
Forecast based on normal weather 1,408 1,348
Preference Share Information
TSE closing price of preference shares
CGT.PR.A - Group 1, Series A,
5 1/2 percent $ 96.00 $ 99.95
CGT.PR.B - Group 1, Series B,
5 1/2 percent $ 99.95 $ 94.00
CGT.PR.H - Group 2, Series C,
6.45 percent $ 26.05 $ 27.50
CGT.PR.G - Group 3, Series C,
5.72 percent $ 25.50 $ 25.80
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/T/
Note 1: Based on the 12 month period then ended.
Note 2: Degree day deficiency is a measure of coldness which is
indicative of volumetric requirements of natural gas utilized for
heating purposes in all markets. It is calculated by accumulating
from October 1 the total number of degrees each day by which the
daily mean temperature falls below 18 degrees Celsius. The
figures given are those accumulated in the Toronto area.
/T/
The Consumers' Gas Company Ltd.
Consolidated Statements of Income (unaudited) (note 1)
(thousands of dollars except per share amounts)
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Three months ended
December 31
--------------------------------------------------------------
1997 1996
--------------------------------------------------------------
Gas sales $409,313 $427,760
Gas costs 255,036 248,865
-------------------------
Gas sales margin 154,277 178,895
Transportation of gas for customers 23,286 5,244
-------------------------
Net gas distribution revenue 177,563 184,139
Other revenue 64,786 59,790
-------------------------
242,349 243,929
-------------------------
Expenses
Operation and maintenance 82,131 77,811
Depreciation 47,420 41,179
Municipal and other taxes 9,316 8,873
-------------------------
138,867 127,863
-------------------------
Income before undernoted items 103,482 116,066
Financial charges
Interest on long term debt 39,835 37,073
Other interest and finance costs 3,240 4,685
Dividends on Group 2 and 3
preference shares 1,521 1,521
Interest capitalized (1,275) (1,320)
-------------------------
43,321 41,959
-------------------------
Income before income taxes 60,161 74,107
Income taxes
Current 19,596 33,721
Deferred 9,594 1,688
-------------------------
29,190 35,409
-------------------------
Net income 30,971 38,698
Dividends on Group 1 preference shares 71 73
-------------------------
Income applicable to common shares $ 30,900 $ 38,625
-------------------------
-------------------------
Earnings per common share (note 2) $ 0.45 $ 0.58
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/T/
Note 1: Due to the seasonal nature of the Company's operations
and the Company's rate design which emphasizes the recovery of
higher levels of allocated costs of service during the heating
season, the amounts shown for the three month period are not
necessarily indicative of the results for the full fiscal year.
Note 2: Earnings per common share amounts have been computed by
using the weighted average number of common shares outstanding
during the period being 67.9 million for the three month period
ended December 31, 1997 (66.6 million for the three month period
ended December 31, 1996).
/T/
The Consumers' Gas Company Ltd.
Consolidated Balance Sheets (unaudited)
(thousands of dollars)
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December 31 September 30
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1997 1997
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Assets
Current assets
Cash and short
term investments $ 5,342 $ 892
Accounts receivable 318,880 191,653
Materials and supplies 34,982 37,257
Gas in storage 241,656 309,901
Income taxes recoverable 2,299 -
Prepaid expenses 67,922 16,673
--------------------------------
671,081 556,376
--------------------------------
Property, plant
and equipment 3,970,449 3,874,719
Accumulated depreciation 1,014,111 974,029
--------------------------------
2,956,338 2,900,690
--------------------------------
Other assets and
deferred charges 89,724 85,132
--------------------------------
$3,717,143 $3,542,198
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Liabilities and shareholders' equity
Current liabilities
Loans and notes payable $ 488,735 $ 354,268
Accounts payable 291,678 317,467
Income and other
taxes payable - 47,648
Deferred income taxes 19,402 9,867
Dividends payable 20,616 20,231
Current portion
of long term debt 67,648 253,640
---------------------------------
888,079 1,003,121
---------------------------------
Long term debt 1,685,143 1,408,145
---------------------------------
Preference shares 100,000 100,000
---------------------------------
Deferred income taxes 4,113 3,880
---------------------------------
Shareholders' equity
Capital stock
Group 1 preference shares 5,182 5,182
Common shares 333,420 333,420
Contributed surplus 50,195 50,195
Retained earnings 651,011 638,255
---------------------------------
1,039,808 1,027,052
---------------------------------
$3,717,143 $3,542,198
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/T/
Note 3: The consolidated financial statements and related notes
have been prepared in accordance with generally accepted
accounting principles applicable to interim periods; consequently
they do not include all generally accepted accounting disclosures
required for annual consolidated financial statements. For more
complete information these consolidated financial statements
should be read in conjunction with the consolidated financial
statements and notes contained in the Company's Annual Review and
Financial Statements.
/T/
The Consumers' Gas Company Ltd.
Consolidated Statements of Changes in
Financial Position (unaudited)
(thousands of dollars)
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Three months ended
December 31
--------------------------------------------------------------
1997 1996
--------------------------------------------------------------
Cash generated from operations
Net income $ 30,971 $ 38,698
Charges (credits) not
affecting cash
Depreciation 47,420 41,179
Deferred income taxes 9,594 1,688
Amortization of deferred charges
and other items 635 629
-------------------------
88,620 82,194
Change in non-cash
operating working capital (183,692) (82,368)
-------------------------
(95,072) (174)
-------------------------
External financing
Issue of long term debt 277,045 200,954
Issue of common shares - 1,171
Long term debt repayments (186,039) (16,142)
Redemption of Group 1
preference shares - (268)
------------------------
91,006 185,715
------------------------
(4,066) 185,541
------------------------
Dividends paid
Group 1 preference shares 71 76
Common shares 18,638 17,291
------------------------
18,709 17,367
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Investments
Additions to property, plant and
equipment 103,068 79,999
Additions to other assets
and deferred charges 5,227 8,648
Other, net (1,053) (606)
------------------------
107,242 88,041
------------------------
Increase (decrease) in cash ($130,017) $ 80,133
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/T/
For the purpose of this statement, cash is defined as cash and
short term investments less loans and notes payable. |
